FinMin likely to take up IKEA's Rs 10,500cr proposal on Nov 20
After scrutiny of the application by the industry department, sources said IKEA's investment proposal to set up single-brand retail stores in India may now be taken up by the Foreign Investment Promotion Board (FIPB) in its next meeting.
The Finance Ministry said the next meeting is scheduled for November 20. It, however, said "agenda for the meeting will follow".
Sources said the business interest shown by IKEA in India also came up for discussion during the meeting between visiting Swedish Minister for Enterprise Annie Lööf and Indian Commerce and Industry Minister Anand Sharma.
Sharma assured the Swedish minister that IKEA would "get a green light soon" to carry out its business in India.
Even after FIPB's clearance, however, IKEA's proposal will have to be finally approved by the Cabinet Committee on Economic Affairs (CCEA), as investments requests above Rs 1,200 crore require approval at the highest level. The IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single brand
retail trading in India through a 100 per cent subsidiary.
This would be the largest investment in the single-brand retailing ever since the government allowed foreign investment in this sector in January.
With the government relaxing the mandatory 30 per cent sourcing clause in September, IKEA which had earlier expressed concerns over the issues,
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